State moves ahead with audit of child-care subsidies

The joint legislative audit committee agreed today to move ahead with a full-audit of the state's taxpayer-subsidized child-care program.

The decision comes in the wake of a Journal Sentinel investigation “Cashing in on Kids” that uncovered fraud and deception within the $340 million Wisconsin Shares program.

The newspaper spent four months investigating the 12-year-old program and found that the system is easily scammed. Child-care payments were made based on false records and phony employers. With a limited access to records, the Journal Sentinel identified about $750,000 in suspicious payments to child-care providers.

Since the series has appeared, Gov. Doyle has proposed a swipe-card system, a fraud hotline and a quality-rating system that child-care providers would be required to meet. In the meantime, the District Attorney in Racine County has launched two separate criminal investigations.

About Raquel Rutledge

Raquel Rutledge is an investigative reporter. Her work has been recognized with numerous national awards, including a 2010 Pulitzer Prize for exposing rampant fraud in Wisconsin's child-care subsidy program.